Investors and loan providers need to know that you have a solid understanding of the trajectory of your business. You need to prove that there is an attainable and sustainable need for your solution, that you have a strong business strategy, and that your business can be financially stable.
If you say your management team is experienced and qualified to help the business succeed, you have to support that claim with resumes that demonstrate that experience. It`s easy to lose credibility – and investors – if you`re making claims you can`t fully support.
The more you test and review elements of your plan, the better your plan and business will be. This can save you from spending days developing a strategy that just isn`t feasible.
The business plan is an essential component of normal due diligence. Never do a pitch without having a plan, because if investors like the pitch they will ask questions that you can`t answer without a real plan.
The vision should include tangible goals such as profits and market share, but more importantly, it should focus on the intangible/unquantifiable long-term goals, such as your willingness to adapt, emerging business-trends, and an ever-present desire to `excel.`
Do not misunderstand, these are important inclusions in your plan; however, during the early stages of drafting, it is important to create a broad vision that can be adapted once your specifics have been identified.